ARM pact to help Intel into a New Chip Deal

Intel expanded its custom manufacturing business on Tuesday to build chips based on ARM architecture. This has a positive result in Apple using the Intel’s factories to manufacture the iPhone and iPad chips. Intel will help to provide the state-of-the-art manufacturing capabilities to Apple with the 10-nanometer process.

According to Patrick Moorhead, principal analyst at Moor Insights and Strategy, “The deal between ARM and Intel increases the chances that Apple would run their products through Intel. Intel has improved their methods, tools, and willingness to work with companies on big volumes. Intel needs to prove that Apple needs to come to them to be competitive and that first chance will be on Intel 10-nanometers”.

Lately, PC and mobile chip shipments had been declining but with the expansion of Intel’s custom manufacturing business, they are expected to keep its factories busy.

Previously, Intel used to build chips in its own workshops and now they are making chips for Netronome, Achronix, and LG with a focus on field-programmable gate arrays (FPGAs).

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